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Financial Conversations with Fitz #29 - Cash for Clunkers... What a program!!! - 07/28/2009

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It is summer!!!!   Storms, rain, and sunshine…. the whole bucket…..Corn and beans are growing.  We missed the hail in Northern Iowa.     TSB was at the parade in Leland Founder Days……Just have the Britt Hobo parade left.   Summer is moving along fast.  Did the North Iowa Fair and Hancock Fair this week.   The young people still amaze me with their talents and creativeness.   Mitchell County this week and Kossuth next week.   Also did the BBQ Bash in Mason City….Good Food and music.   Visited with lots of people.   Farmers saying crops the best they have had.

Today we are going to visit about quite the stimulus program.   CASH FOR CLUNKERS……If you have a qualifying car does your local dealer and the gov’t have a deal for you!!!!   It went into effect on Friday and today.   There is a $billion dollars available at this time.  If you are interested you better get going this week.   If you divide $ Billion dollars by an average of $4,000 that is only 250,000 cars.   That leaves about 5,000 cars/state.   In Iowa cars dealers in the first half of 2009 only sold 32,000 new cars compared to 44,000 cars in the same period of 2008.  You can trade this unit in on a new car that gets good mileage.   At least 5 gallons better.   There are all kinds of rules and regulations.  136 pages of them if you are looking for something to read.    The best way to be sure is go to your local dealer that is participating.   You can look them up on the internet to see or just stop in to visit with them.   There is quite a web site at www.cars.gov .   It has lots of information if you can put it all together.    The usual sites for Kelly Blue Book and Edmunds.com also have information.   You need to own the car and have it insured for a least a year.   This program was supposed to get us customers into the dealers to purchase good MPG cars and get the gas guzzlers off the road.   It seems to have worked.    Several dealers say it will increase their sales by 30% for July or August.   These cars will be sent to the junk yard.   There is even a list of qualified junk dealers listed.   Sort of like a dairy buyout.   They will be sent to slaughter.   Lots of pro and cons of this program.   If you have a job and ready to buy…..it is good.    If you aren’t working and can’t afford to buy…it isn’t going to help.    It will take the 250,000 cars out of the system.   If you want to stop in to see us on financing before you go in to the dealer, give us a call.   We can tell you if you qualify for about a $250/month payment or not on each $10,000.
Where to go for help …..Your local banker!

Remember that you should deal with people in community banks and organizations.  When you work with them, you know that you are working with people you will also see at ball games, church, or community events.  So, if in doubt give us a call.

For qualifying criteria and current information about the Cash for Clunkers program, please see www.cars.gov